Zubaida khanum baji is a 43 year old married lady who has lived in a city named Multan, Pakistan for the past 10 years. She completed her education till 8th standard. Her husband name is F. A., who has run a food business in the food market for the past 10 years. He sells Punjabi food (Daal chawal). Punjabi people are fond of daal chawal. She is the mother of two sons and three daughters. Her sons work with their father in his food business. Zubaida baji runs a boutique in her house. She makes embroidered dresses and simple stitched dresses. People come and give her orders for the dresses, and her daughters help her with making the dresses. She is applying for a loan to buy materials (cloth, colored thread, and beads) to increase the income of her boutique.
She is a group leader of some more local women. Irshad baji, Tahira baji, and Naziran baji each want a loan to buy clothes for their boutiques. Safia baji wants a loan to buy bangles for her bangle selling business.
This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.